“How much will a bridging loan cost me?” / “Is bridging cheaper than losing my purchase?” / “What is the difference between an open and closed bridge?” / “What rate can I expect on a UK bridging loan in 2026?” / “How do I calculate the total cost including all fees?”
| Parameter | Typical range | Notes |
|---|---|---|
| Monthly rate | 0.52%–1.5% | Lower end for prime, low LTV closed bridge; higher for complex/open |
| Prime rate (LTV <55%) | From 0.52%/month | Closed bridge, strong exit, experienced borrower |
| Standard residential | 0.7%–1.0%/month | LTV 65%–75%, good credit, clear exit |
| Higher LTV / open | 1.0%–1.5%/month | LTV 70%–80% or uncertain exit |
| Arrangement fee | 1%–2% of gross loan | Typically 1.5% for mainstream lenders |
| Exit fee | 0%–1% | Many mainstream lenders: 0%; some charge 1% |
| Max LTV | 75% gross (some 80%) | Gross = including all fees and rolled interest |
| Typical term | 1–18 months | Maximum usually 24 months; 6–12 months most common |
| Open vs closed premium | +0.10%–0.30%/month | Varies by lender and exit certainty |
| Minimum loan size | £25,000–£50,000 | Some specialist lenders from £25K |
| Valuation fee | £300–£800 | Desktop / AVM for simple cases; full survey for complex |
| Legal fees | £800–£1,500 | Borrower pays lender’s legal costs as well as own |
Rolled-up interest:
Gross = loan + arrangement_fee_amount
Final = Gross × (1 + monthly_rate)^term
Interest = Final - Gross
Serviced interest:
Monthly_payment = loan × monthly_rate
Total_interest = Monthly_payment × term
Fees:
Arrangement_fee_amount = loan × arrangement_fee_pct
Exit_fee_amount = loan × exit_fee_pct
Total_cost = Total_interest + Arrangement_fee_amount + Exit_fee_amount
Effective APR:
APR = (1 + monthly_rate)^12 - 1
Chain break bridge amount:
Bridge = max(0, buying_price - deposit - sale_proceeds)Differentiation sum.money: